Question

Marked price of an article is rupees 2860 and rate of vat is 8% shopkeeper allows a discount of 20% it still makes a profit of 10% If he spent 4% as overheads then find the original cost price of the article and final selling price including VAT

Answer 1

MRP = Rs. 2860
Selling Price = Rs. 3088.80
20% = Rs. 2471.04
2860 - 20% = Rs. 2288
Let the Cost Price be x
(2288 - 1.04x) / 1.04x
x = 2000

Hence the Cost Price of the article is Rs. 2000


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